Publication: Cape Times Issued: Date: 2003-07-29 Reporter: Monica Laganparsad

Schabir Shaik Brimming With Confidence Over Outcome of Arms Deal Investigation

As investigators from the elite Scorpions unit prepare to grill Schabir Shaik today about several documents and meetings to do with the multimillion rand arms deal, the businessman and former anti-apartheid activist was brimming with confidence.

Central to the questioning will be an alleged meeting between Shaik and his long-time friend Deputy President Jacob Zuma at which the latter allegedly tried to secure a R500 000 protection bribe from a French defence company Thales, previously known as Thompson CSF.

Shaik was apparently present at the meeting when Zuma allegedly tried to secure a bribe of half a million rand a year to secure Zuma's protection of the company during the investigation into the arms deal as well as his support for future projects.

Earlier this month, Shaik brought an application before the Durban High Court contesting the summons. Shaik's legal team argued that Section 28 (6) of the National Prosecuting Authority Act, under which Shaik was summoned, was unconstitutional and invalid. They argued that, in terms of the section, Shaik could incriminate himself if he answered questions.

Advocate Marumo Moerane, for the state, argued that Shaik was not arrested on corruption charges but was a suspect. He said no decision had been taken on whether to charge him. Two weeks ago, Judge Ron McLaren dismissed the application.

"It's the absolute truth (his evidence). Whether it comes out in one way today or in five days, the issue will come to a conclusion," Moerane said.

Shaik is the director of African Defence Systems (ADS) and a shareholder in Thompson CSF. Both companies won a tender in the arms deal.

ADS is a partner in the South African corvette consortium which is supplying four corvettes to the SA Navy.

Shaik was arrested in October 2001 after the Scorpions raided his home and the business premises Nkobi Holdings as part of its investigation into the irregularities in the arms deal.

Nkobi Holdings was formed in 1995 and consists of nine companies dealing with engineering services, information technology, defence, leisure transportation biometrics and industrial engineering.

The scorpions allegedly found cabinet documents, including minutes on the arms deal and correspondence between public enterprises and defence departments.

The matter is expected to be heard on August 4.

Shaik's brother, Shamin "Chippy" Shaik, was the suspended acquisition chief for the defence department.

At a departmental disciplinary hearing, Chippy Shaik was found guilty of illegally disclosing confidential information contained in the auditor-general's draft report on the arms deal last year. But he appealed the hearing and won.

Schabir, Chippy and Mo (another brother) formed the Mandla Judson Kuzwayo Unit and began building ANC support. A former engineer, Shaik was recruited into the ANC by his lawyer and trade unionist brother Yunus, who was at one time the director of the Commission for Conciliation, Mediation, and Arbitration in Kwa Zulu-Natal.

Shaik was exiled to the United Kingdom from 1987 to 1988.

"There I learned about remote system detonations. I met with parties from the ANC that facilitated training.

"I also had the opportunity to take over funding from some shells operating in Kwa Zulu-Natal," he said.

With acknowledgements to Monica Laganparsad and the Cape Times.